what is a business? 1.1

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Human Resources management

the process that makes sure the business employs the correct number of skilled employees to produce and deliver its products.

finance and accounts

processes ensure that the business has enough money to carry out its business activity over time

marketing

involves the process of selling the right product, at the right price, at the right time, to the right customers.

operations

how this core activity is carried out. Operations must plan how and in what quantity goods and services are to be produced.

inputs

all the resources needed to create a product. These resources belong to one of three categories:

• physical

• financial

• human

processes

combine their inputs in different ways to produce products. sometimes called business functions.

output

Goods are tangible, meaning they have physical characteristics and can be measured.

Services are intangible, meaning they cannot be touched or described by physical characteristics.

feedback

happen when the output of a system becomes an input to the same system.

negative feedback

occurs when the output feeds back into the inputs in a way that moves the system in the opposite direction.

positive feedback

It moves systems and processes in the same direction.

stakeholders

any individual or group that affects or is affected by, an organization

ethics

meeting the need of the present without compromising the ability of future generations to meet their own needs

entrepreneur

a person that organizes human, physical, and financial resources to start a business

ecological ceiling/planetary boundaries

limits of planetary systems; the outer ring of the Doughnut Economics model.

social foundation

obvious needs such as food, water, and housing. But there are also needs related to social interactions such as human networks, social equity, political voice, and work.

economy

A system for producing and provisioning or distributing goods and services among a group of people

systems and groups of people that distribute goods

households, states, commons, and markets

sectors of economy

primary, secondary, tertiary, and quaternary

primary sector

the extraction, or production, of raw materials from the Earth.

secondary sector

manufacturing and processing, where raw materials are made into products for sale.

tertiary sector

any business that sells a service (includes businesses that sell clothing and food, as well as education, healthcare, legal services, travel and transportation.)

quaternary sector

refers to services that focus on knowledge (khan academy)

supply chain

The steps involved in creating finished goods.

integrated business

A business whose activities span two or more sectors.

outsourced

When a business takes an internal function and has it performed externally by another person or business. (apple)

a business has a good chance of success with

there is a skilled and collaborative team of employees in place; there is enough funding to run the business ;the marketing has been researched well; and the operations are efficient and resilient.

work of entrepreneurs and other change makers

understanding communities and their problems; designing and planning solutions; taking action; and sharing and growing actions and ideas to increase impact.

intrapreneur

A person who develops new ideas, processes or products for a business in which they already work.

reasons for starting a business

new idea, passion for change, market need, earning a living, financial reward, work-life balance, control

challenges of starting a business

lack of funds, competition, small market, unskilled workers, poor management, external changes/shockss

steps to begin a business

refine the idea, business plan, legal structure, register, localise, hire, and get funding.

swot

a simple tool for a business to analyse its internal strengths and weaknesses, and external opportunities and threats.

steeple

sociocultural, technological, economic, enviornmental, political, legal, and ethical

sociocultural factors

all the social and cultural characteristics of a region or country.

technological factors

The state of current technology will affect what products a business offers its customers.

economic factors

Countries and regions have different economic conditions that will affect the demand for goods and services.

enviornmental factors

Many businesses rely on natural resources as inputs and changes in the natural environment can have a large impact on businesses

political factors

Political parties have different ideas about how much government regulation there should be of businesses.

legal factors

Businesses must follow all laws and regulations. These laws may be made at a national, regional, or local level.

ethical factors

Business activity should serve human needs and respect the health of the planet. Many businesses, however, have conflicts between the goals of business growth and profit and their social and/or environmental responsibilities.

business plan

a tool used to describe a business

primary research

Research (in a market) that involves creating new information that is gathered through surveys, interviews, observations, focus groups, camera studies or other methods.

quantitative data

Information that can be counted and has a numerical value.

qualitative data

Non-numerical data that describes qualities or characteristics.

elements of a business plan

why, how, what

factors of production

land, labour, enterprise, and capital

products

goods, consumer goods, capital goods, services

business functions

human resource management, finance and accounts, marketing, and operations management